South Korea produced 66 million tons of crude steel in 2023, marking a 1.3% increase compared to 2022. This uptick can be attributed to the global steel demand recovery and the robust production capacity of South Korean producers.
Despite a 27.9% decline in 2022, South Korea achieved significant success by increasing wire rod production in 2023. Wire rod production saw a 7% increase, reaching 2.8 million tons in 2023, up from 2.6 million tons in 2022.
There was a decrease in H-profile production in 2023. South Korea, which produced 2.7 million tons of H-profile in 2023, experienced a decrease of 10.8% compared to 2022. In 2022, South Korea's h-profile production was recorded as 3 million tons. This decline is attributed to the slowdown in the construction sector and increasing competition from abroad.
On the other hand, hot-rolled sheet production demonstrated strong performance in 2023, reaching 16 million tons, an 8.4% increase from the previous year's 15.1 million tons.
In contrast, cold-rolled sheet production experienced a slight decline of 0.7% in 2023, falling to 8.5 million tons from 8.6 million tons in 2022.
This complexity in the sector is interpreted as a result of both global and local economic developments. While the recovery in global steel demand and the strong capacity of South Korean producers propelled crude steel and wire rod production, slowdowns in the construction sector and international competition adversely affected H-profile and cold-rolled sheet production.
The sector's performance in 2024 will depend on the trajectory of the global economy, developments in the construction sector, and the competitive strength of South Korean producers.
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